Monday, September 22, 2014

‘Citibank must honour its obligations’

Cabinet Chief Jorge Capitanich speaks at government house.

Cabinet chief Jorge Capitanich urged Citibank to “honour its obligations to transfer funds to (Argentina’s) bondholders under Argentine law” following the New York's Second Circuit Appeals Court decision to dismiss an appeal by Citigroup and Argentina that sought to overturn US Judge Thomas Griesa’s order blocking the payment of Argentine bonds.

“The Citibank faces no dilemma, it must honour its obligations,” the chief of ministers said in his daily press briefing at government house. Before the Court’s decision, Citibank’s lawyer Karen Wagner had said that the bank would comply with Griesa’s order if the appellate court did not grant its request for a reversal.

Citigroup had argued before the appeal hearing that it faced "a serious and imminent hazard" if it could not process another interest payment by Argentina on US$8.4 billion in bonds the country issued under local laws.

“The Citibank must honour its obligations to transfer funds to (Argentina’s) bondholders under Argentine law,” Capitanich stated.

BANK OF NEW YORK MELLON

The kirchnerite official also spoke about an ad the government published today in newspapers calling the Bank of New York Mellon (BoNY) “to step down immediately” as Argentina’s trustee, following the approval of the Sovereign Payment law which changes the payment location of Argentine bondholders.

Capitanich reiterated that BoNY “has to be replaced, as it is stipulated by the contract” given it has “failed to honour its obligations.